Alliance Energy adds new info about New York power plant deal

Carthage Energy LLC and Allegany Generating Station LLC on Aug. 2 filed with the Federal Energy Regulatory Commission a supplement to their July 22 application for the transfer of control of two power plants.

The two companies had requested Federal Power Act Section 203 authorization for two proposed transactions. In response to a request from FERC staff, the Aug. 2 supplement is intended to provide some clarification related to two issues: the description of the transactions; and the analysis of the effect of the transactions on competition.

One transaction involves the proposed transfer of control over the approximately 63 MW Carthage generation facility in the New York Independent System Operator (NYISO) market. The other involves the asset sale of the Allegany facility, a 67 MW generation facility, also in the NYISO market.

Affiliates of Iberdrola USA are the sellers in each instance and the purchaser in each case is an affiliate of Alliance Energy New York LLC (AENY). Following the transactions, Iberdrola USA will no longer have indirect control over either of the facilities. Instead, AENY will have indirect control over the two plants.

AENY will acquire 100% of the ownership interest in Carthage Energy from an Iberdrola USA affiliate, resulting in the transfer of control over the 63-MW Carthage generation facility from Iberdrola USA to AENY. Allegany will acquire the 67-MW Allegany generation facility and related assets from Rochester Gas and Electric. Allegany is a wholly-owned direct subsidiary of AENY.

As to the effect of the transactions on competition, the aggregate amount of generation owned or controlled by AENY and its affiliates in the Northeast is 385.5 (nameplate) MW, of which 352 MW (nameplate) is located in the NYISO market. With the additional 130 MW (nameplate) of generation that will be controlled by AENY after the transactions, the total capacity to be owned or controlled by AENY and its affiliates in the NYISO balancing authority area would be 482 MW (nameplate). The companies said that is not a high enough level to assert market power in the region.

Carthage owns a 62.9 MW (nameplate) dual fuel (gas/oil) combined-cycle cogen located in Carthage, N.Y. The Carthage facility is interconnected to the transmission system owned by Niagara Mohawk Power d/b/a National Grid and under the operational control of the NYISO.

Carthage is an exempt wholesale generation (EWG) and FERC has authorized Carthage to engage in wholesale sales of energy, capacity, and ancillary services at market-based rates. Carthage sells all of the output from its facility into the wholesale markets operated by NYISO.

RG&E owns a 67-MW (nameplate) gas-fired combined-cycle plant located in Hume, N.Y. The Allegany facility is interconnected to the transmission system owned by RG&E. RG&E sells all of the output from the Allegany facility into the wholesale markets operated by NYISO. The Allegany facility is not currently operational, requiring certain repairs before returning to service which are projected to require approximately four months, the July 22 filing noted.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.